Henrickson Nauta Wealth Advisors Inc. CLIENT LOGIN
AboutServicesWho We ServeClient ResourcesContact
Home » Client Resources » Featured News

Featured News

More Articles  Printer Friendly Version


Why The New Bull Market Theory Was In The News This Past Week

5147 2

With the Standard & Poor’s 500 stock index more than 20% higher than its bear market low on October 12, 2022, The Wall Street Journal, The New York Times, Reuters and other major financial news outlets this past week reported it signaled the beginning of a new bull market.

The financial press this past week diligently reported that the +20% rule was only a rule of thumb. More important than a rule of thumb, however, are the unusual contradictory signals that a recession was bout to begin at the same time as a jobs boom.

For the record, after hitting an all-time high on Jan. 3, 2022, the S&P 500 began a long decline. A bear market began on June 23, 2022, when the stock index closed more than 20% lower than its early-January high. Stock prices bottomed October 12, 2022, and are now more than 20% off the bear market low.

Some other rule of thumb indicators have been predicting a downturn for many months. The consumer confidence survey by the University of Michigan, the business-owner optimism survey by the National Federation of Independent Business, and the U.S. Index of Leading Economic Indicators from The Conference Board have looked dismal for months. However, at the same time, a job-creation boom has been underway.

Net new jobs created in May were at the same pace as the boom after The Great Recession of 2008 and other previous U.S. expansions. With net new job creation booming, more Americans are going to be earning income and spending it. Consumer sentiment is in the toilet and so is the LEI. But parts of the economy are booming. Perhaps that reflects the turning point signaled by the widely reported 20% rule of thumb.

Meanwhile, the widespread release of generative artificial intelligence (AI) by Microsoft Bing and Alphabet Google in March 2023 is predicted by Goldman Sachs, a leading Wall Street firm, to boost U.S. economic growth by 1.5 percentage points annually through 2033. That’s about double the economic growth forecasted by the nonpartisan Congressional Budget Office.

Even if Goldman Sachs is overly optimistic in its baseline case for a 1.5% annual boost, a virtuous cycle of growth seems almost certain. And, if Goldman’s most-likely case is correct, which seems plausible, it could drive stock prices much higher.

The end of a bear market and the beginning of a new bull cycle is so hard to recognize because it happens when least expected. Amid the din of the modern world, the significant growth potential boost to the U.S. economy from AI is easily missed. Let us know if you want our report on this topic.

5147 3

The Standard & Poor’s 500 stock index closed Friday at 4298.86, up +0.11% from Thursday and 0.39% from a week ago. The index is up +92.14% from the March 23, 2020, Covid bear market low, and down -10.38% from its January 3, 2022, all-time high.

The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is a market-value weighted index with each stock's weight proportionate to its market value. Index returns do not include fees or expenses. Investing involves risk, including the loss of principal, and past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. ​​​​​​​​

Nothing contained herein is to be considered a solicitation, research material, an investment recommendation, or advice of any kind, and it is subject to change without notice. Any investments or strategies referenced herein do not take into account the investment objectives, financial situation or particular needs of any specific person. Product suitability must be independently determined for each individual investor. Tax advice always depends on your particular personal situation and preferences. You should consult the appropriate financial professional regarding your specific circumstances.
The material represents an assessment of financial, economic and tax law at a specific point in time and is not intended to be a forecast of future events or a guarantee of future results. Forward-looking statements are subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete, and is not intended to be used as a primary basis for investment decisions.
This article was written by a professional financial journalist for Advisor Products and is not intended as legal or investment advice.

Email this article to a friend

Where The Boom No One Expected Gets Its Legs
Latest On Inflation, Consumer & Business-Owner Optimism
Slower Growth But Economic Outlook Remains Bright
Labor Market And Inflation Drove Stocks Higher
Costlier Homes Expected To Appreciate 4% Annually For The Next Five Years
Leading Economic Index Falls For 16th Straight Month
Tax-Sensitive Investment Planning In 2023 
A Healthy Recipe For Growth Is Simmering
Good News About The U.S. Economy
The New Bull Market Has Broadened
An Economy Goldilocks Would Definitely Live With
Monthly Pace Of New-Job Creation Slowed In June, Which Is Good News
Standard & Poor's 500 Gained 9.9% In Q2 2023 
This Week’s News For Investors
This Week’s News For Investors Is Very Good

This article was written by a professional financial journalist for Henrickson Nauta Wealth Advisors Inc. and is not intended as legal or investment advice.

©2023 Advisor Products Inc. All Rights Reserved.
[ About ] [ Services ] [ Who We Serve ] [ Client Resources ] [ Contact ] [ Disclosure ] [ Form CRS ]
© Henrickson Nauta Wealth Advisors   2325 Belmont Center Dr. NE, Suite A Belmont, MI 49306   P:(616)361-9308   info@hnwealthadvisors.com

Securities offered through Triad Advisors, LLC., Member FINRA/SIPC. Investment advisory services offered through Henrickson Nauta Wealth Advisors, Inc., a registered investment advisor. Henrickson Nauta Wealth Advisors, Inc. and Henrickson Nauta Insurance Advisors, LLC are not affiliated with Triad Advisors, LLC.